Now Reading: Lightspeed exits PhysicsWallah with Rs 550 crore stake sale
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Lightspeed exits PhysicsWallah with Rs 550 crore stake sale
Lightspeed Venture Partners has fully exited edtech major PhysicsWallah, selling its remaining 1.61% stake for Rs 549.7 crore through block and bulk deals. The venture capital firm offloaded 4.67 crore shares at…
Lightspeed Venture Partners has fully exited edtech major PhysicsWallah, selling its remaining 1.61% stake for Rs 549.7 crore through block and bulk deals. The venture capital firm offloaded 4.67 crore shares at a weighted average price of Rs 117.72 apiece, a 6.7% discount to the stock's closing price.
ICICI Prudential Mutual Fund was the largest buyer, acquiring 2.2 crore shares worth Rs 259 crore. Other buyers included Goldman Sachs, Ghisallo Master Fund, Societe Generale and Morgan Stanley Asia. Lightspeed first invested in PhysicsWallah during its Rs 210 crore Series B round in September 2024.
PhysicsWallah, which listed in November, reported a net loss of Rs 88.3 crore in Q1 FY27 but turned EBITDA positive with a margin of 4.9%. Its operating revenue crossed Rs 1,000 crore in the quarter, though results were hit by the NEET UG postponement. The stock closed 3.91% higher at Rs 126.10 on the BSE.
Indian Opinion Analysis
Lightspeed's full exit comes just months after PhysicsWallah's IPO, a rare quick divestment for a late-stage backer. The edtech sector remains under regulatory and market scrutiny after Byju's collapse, making profitability the key metric for listed players. PhysicsWallah cut its annual net loss 90% to Rs 24.2 crore in FY26, but Q1 FY27 losses widened sequentially. The company must sustain EBITDA positivity to reassure investors, its next quarterly results, due by November, will show whether the NEET disruption was a one-off hit. The stock still trades 12% below its IPO opening price.
Source: inc42.com
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